Comments on: Headlines revive memories of 80s economicshttps://libn.com/2013/04/10/headlines-revive-memories-of-80s-economics/
The premier source of Long Island news and data on business, economic trends and the region’s robust entrepreneurial sector.Mon, 19 Mar 2018 12:01:41 +0000hourly1https://wordpress.org/?v=4.6.1By: Nas Sawedhttps://libn.com/2013/04/10/headlines-revive-memories-of-80s-economics/comment-page-1/#comment-167634
Wed, 10 Apr 2013 12:58:21 +0000https://libn.com/?p=102177#comment-167634The great joke about supply side theory is that it never really existed. Reagan’s first stab at tax reform -TEFRA 1982- happened to be concurrent with another economic input: Paul Volcker bringing down overnight lending rates by over 1300 basis points. From that time, charlatans like Arthur Laffer (who Stockman also thinks he’s useless) have latched on to this massive cut in interest rates and the resulting spur in home sales through reduced mortgage rates (as we see now) lower business lending costs (as we see now) and lower auto financing costs (as we see now.) The minor fiddling of the tax laws had no effect or genuine economic input. But Laffer has lived his career on pushing this myth. It didn’t work then- and it won’t work now.
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